Many non-profit organizations’ calendar year-ends are just around the corner, and there are several things you can do to ensure your non-profit is audit ready. Organizations should have tight internal controls, organized financial processes, and timely month-end closing and review of financial statements. However, the best way is
to keep your CPA informed throughout the year. So remember to make a list of any account or business changes you have not yet discussed with your CPA, and ensure you discuss at year-end.
Additionally, the following guidelines will help you think like an auditor in preparation of your non-profit’s year-end audit.
- Compare reconciliations, year-end statements, and other supporting schedules to general ledger balances to ensure that they agree. This should include, but is not limited to, the following:
- Accounts receivable and accounts payable aging schedules
- Amortization schedules for note agreements
- Bank and credit card reconciliations
- Investment account statements
- Supporting schedules for prepaid assets
- Donation or revenue records
- Gather copies of any new or amended agreements for your CPA. These agreements should include, but are not limited to, the following:
- Lease Agreements
- Notes Payable
- Notes Receivable
- Additional preparations include:
- Complete any year-end request and inquiry lists provided by your CPA.
- Accumulate board and committee meeting minutes for the year.
- Update Board of Director Listing for the year.
- Evaluate your fixed assets for disposals and additions so you may appropriately update related depreciation schedules.
- Make sure you have supporting invoices close by for new fixed asset additions that your CPA may have questions about (cost, date acquired, location used, VIN # or unique identifier for the new asset).
- Maintain documentation for journal entries and in-kind donations.
- Provide updated accounting policy and/or procedure documents to your CPA.
- Record donations to your non-profit, including in-kind.
Please do not hesitate to reach out to GBM if you have any questions regarding information your CPAs may need for your non-profit organization’s audit.
